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US and China Agree Framework to Revive Geneva Trade Truce

The framework requires presidential sign-off before tariff cuts take effect or rare earth shipments resume.

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U.S. Treasury Secretary Scott Bessent and Chinese vice premier He Lifeng pose for a photo with U.S. Trade Representative Jamieson Greer, U.S. Secretary of Commerce Howard Lutnick, Chinese Commerce Minister Wang Wentao, and China's International Trade Representative and Vice Minister of Commerce Li Chenggang, in London, Britain June 9, 2025. United States Treasury/Handout via REUTERS
U.S. Secretary of Commerce Howard Lutnick answers questions from the media as he returns to Lancaster House, on the second day scheduled for trade talks between the U.S. and China, in London, Britain, June 10, 2025. REUTERS/Toby Melville
Chinese Vice Premier He Lifeng, also a member of the Political Bureau of the Communist Party of China Central Committee, shakes hands with U.S. Treasury Secretary Scott Bessent prior to the first meeting of the China-U.S. economic and trade consultation mechanism in London, Britain, June 9, 2025. The meeting opened here on Monday. He Lifeng attended the meeting with U.S. representatives. (Photo by Li Ying/Xinhua via Getty Images)

Overview

  • Negotiators concluded two days of London talks with a pact to implement the 90-day tariff truce struck in Geneva last month
  • The agreement commits China to lift restrictions on rare earth minerals and magnets in exchange for easing US export controls on semiconductor tools and aerospace components
  • Commerce Secretary Howard Lutnick said the framework will be sent to Presidents Trump and Xi for final approval before any duties are rolled back
  • Customs data showed China’s exports to the US plunged 34.5% in May, marking the sharpest drop since early 2020 and highlighting pressure on global supply chains
  • If leaders do not reach a broader deal by August 10, tariffs will automatically revert to previous levels of up to 145% in the US and 125% in China